HOME
 

ESG Investing for Fund Accountants

IASeminars
Course summary
Professional Training
part 1: 8 hours and part 2: 16 hours
950 - 1,850 GBP
Part time
Professional Training
Course Dates
Online courses
950 GBP
07/11/2022

Online courses
1,850 GBP
14/11/2022

Online courses
Contact our team today to ask about our live, online course schedule.

Course description

ESG Investing for Fund Accountants (Virtual Classroom)

Part 1

This online training is being delivered live in two 4-hour sessions which run from 13:30 – 17:30 London (UK).

The Covid-19 Pandemic has forced investors and lenders to become acutely alert to investment risk that lies outside of the traditional credit, market and operational risk spectrum. Analysing their ESG exposures before investing allows them to appraise their strategic risk spectrum, using a proven set of tools.

Equity and debt issuers are increasingly positioning themselves on an ESG spectrum in order to attract investment funds. Even classic ‘smoke-stack’ industries are working hard to identify an ESG narrative with which to associate themselves. Sometimes their wok manifests as internal/organic development and sometimes it comes as a result of acquisitions.

Investors know from past experience how damaging ESG related events can be to their overall portfolio performance. Ratings systems, such as Morningstar, and index providers, such as MSCI, have helped informing potential and current investors about the ESG risk profile of their investment portfolios.

The ‘Basics of ESG Investing’ programme starts by looking at the typical investment process adopted by fund managers. This includes a description of the ‘investment universe’ with and without ESG qualifying securities, as well as asking the key question whether ESG is an asset class in itself.

The second session looks at the internal components of standard valuation models (no math skills needed here!) in order to identify where ESG metrics are making their presence felt (if any) and the session closes with a look at carbon credit trading as an example of a traded price for one of the most significant components of ESG: CO2 emissions.

Session three focuses on data sources and data availability. In particular, what is the provenance of the data, how granular is it and can it be used to obscure, or ‘greenwash’ a company’s true ESG footprint?

Session four outlines the most important ESG initiatives and comments on their importance to global investment decisions and a changing investment market.

Session five outlines the seven principal metrics that currently are important to investors and discusses the quantitative and qualitative aspects of each metric.

Part 2

This online training is being delivered live in four 4-hour sessions which run from 13:00 – 17:00 London (UK).

According to a February 2021 Bloomberg Intelligence report, global ESG-based investment assets will top USD50trn by 2025, when total global assets under management (AUM) will reach USD140trn. These staggering forecasts underline the importance attributed to this fundamental change to investment management.

This programme offers the informed beginner eight sessions packed with information and opportunity to ask questions and discuss answers.

The first session outlines the breadth and depth of ESG-based investments in terms of types of asset owners, types of funds and size of investment portfolios (AUM).

The following three sessions (2, 3 and 4) describe, contrast and debate the six different ESG strategies professional investors apply in practice.

Session five looks at how traditional equity investment analysis changes as a result of ESG elements in the portfolio. A major element in this session is the debate around how the perpetuity element in CAPM valuation will change and how to quantify it.

Session six asks the same question as in session five, only this time focusing on fixed income investment analysis. It is reasonable to assume that bond spreads will change, thus driving valuation changes, but how will this process be driven? This will be debated in class.

Session seven discusses the use of ESC indices in portfolio allocation and performance appraisal. A small number of actual index calculations will be performed for illustration.

The final session brings participants to discuss practical approaches to managing ESG investment risk in a portfolio, whether by controls, guidelines or sanctions.

Suitability - Who should attend?

This training course is especially suitable for:

  • Fund accountants
  • Fund administrators
  • Portfolio analysts
  • Performance attribution managers
  • NAV reporting staff
  • Wealth management sales staff
  • Corporate bankers operating in the ESG space
  • Any IMC certificate holder, who wishes to improve their ESG skills

Outcome / Qualification etc.

After this course, participants will be able to:

Part 1:

  • describe the changes to the investment process and determine if ESG is an asset class or an overlay
  • investigate classic asset valuation models and determine how ESG metrics will change the variables
  • describe the data sources available, incl. their level of granularity, and to determine the authenticity and provenance of reported ESG data
  • discuss the main ESG initiatives that are currently influencing investment decisions
  • outline and evaluate key metrics required by professional investors

Part 2:

  • describe the size of and the players in the ESG investment market
  • discuss positive and negative screening strategies and to which extent they lead to portfolio tracking errors
  • explain the main benefits and several disadvantages of integrating ESG fully into existing investment portfolios
  • describe ways investment managers can exert direct ESG influence over companies through impact investing or active ownership
  • discuss corporate ESG activity as either an excess cost or an insurance premium when analysing returns
  • analyse corporate CDS and credit spreads in light of ESG exposure and determine whether bond ratings are sustainable
  • explain the composition of an ESG-based investment index and describe a broad range of index families
  • explain the extent to which an investor is exposed to ESG investment risk, when investing in non-compliant securities

CPE credits are available for all courses.

Training Course Content

This course is designed to cover the following key topics:

Part 1

  • Old Wine in New Bottles
    • The investment process has not changed
    • Typical investment process
    • Investment universe – is ESG an asset class or an overlay?
    • Is ESG investing philanthropy? – risk vs return
  • Valuation Tools in Investment, Trading and Corporate Finance
    • CAPM, WACC and DCF
    • No model incorporates ESG metrics
    • Indirect measures of ESG exposure – operational risk
    • Credit spreads and beta/cost of capital
    • Creating and trading carbon credits
  • ESG Data Availability
    • MSCI ESG key issue hierarchy and ratings
    • Macro data sets, Company disclosure, Government databases
    • Data materiality and validity
    • ‘Greenwashing’ and other threats to data integrity
  • Overview of ESG Initiatives relevant to Investors
    • Global Reporting Initiative (1997)
    • UN Principles for Responsible Investment (2006)
    • Task Force on Climate-related Financial Disclosures (2015)
    • Sustainability Accounting Standards Board (2018)
    • EU Technical expert group on sustainable finance (2018)
  • ESG Metrics for Investors
    • A formal ESG policy and Assignment of ESG responsibility
    • A corporate code of ethics and Diversity among employees
    • An environmental policy and estimates of carbon emissions
    • Health and safety record

Part 2

  • Overview of ESG Investment Activity
    • NBIM – The Norwegian Oil Fund
    • Morningstar Sustainability Investment Funds Screener
    • Bloomberg predictions for ESG AUM by 2025
    • Largest dedicated ESG funds
  • Exclusionary vs Positive Screening
    • Is exclusionary screening the same as ‘cancel’ culture?
    • Supply chain analysis by major industry – Scope 1 vs 2
    • Does screening destroy or enhance ‘asset allocation’?
    • Is positive screening only practical for dedicated portfolios?
    • Tracking error
  • ESG Integration and Thematic Investing
    • Full integration - Higher returns with lower ESG risk?
    • Data quality challenges
    • Prediction of timing and frequency of ESG events
    • Analyst expertise in the securities selection process
  • Impact Investing and Active Ownership
    • What is impact investing? Examples
    • Proxy voting and shareholder resolutions
    • Engagement with companies vs class-action lawsuits
    • ‘Wall Street Walk’ threat vs hedge fund activism
  • Equity Analysis with ESG Exposure
    • ESG cost seen as a reduction in profitability
    • ESG seen as an insurance against corporate disasters
    • Calibrating the perpetuity element in DCF valuation
    • Converting waste into resources (example: desalination)
  • Fixed Income Analysis with ESG Exposure
    • Are traditional bond ratings sustainable?
    • Bond valuation under ESG uncertainty – what gives?
    • Analysis of ‘Green’ bonds
    • CDS and credit spread behaviour through an ESG lens
  • Construction and use of ESG Indices
    • MSCI ESG Index family
    • S&P DJI Index family
    • Examples of ESG index calculations
    • Performance comparisons to non-ESG indices
  • Measuring and Managing ESG Investment Risk
    • How to deal with potential exposure to sanctions and fines
    • What is the investment cost of a corporate ESG breach?
    • Adherence to fundamental operational risk principles
    • Assess internal controls, guidelines and sanctions

Why choose IASeminars

We've trained over 18,000 participants since 2002.

50% of our business comes from returning clients.

We offer both instructor-led and self-study courses, with instructor-led training being delivered over Zoom during the pandemic.

Expenses

The cost of this training course is £950 + VAT for part 1 and £1,850 + VAT for part 2. 

In-House Training

In addition to the scheduled dates and locations, IASeminars can also run this course as in-house training, to meet the specific requirements of your team. Contact them here to request a customised training solution for your team.

About provider

IASeminars Offer Client Focus Training Solutions 

Whatever your requirements are for training in international accounting, you can be assured that IASeminars are ready to deliver. Offering topics such as IFRS, US GAAP, IPSAS, Management Accounting and Banking Regulation we are passionate about helping you progress your...


Read more and show all courses with this provider

Request info

Fill out your details to find out more about ESG Investing for Fund Accountants.

  Contact the provider

  Get more information

  Register your interest

Country *

Contact info

IASeminars

15 Westferry Circus
Canary Wharf
E14 4HD London

 Show phone number
www.iaseminars.com


Request information

Find out more about this ESG Investing for Fund Accountants course - simply fill out your details:

Find a course for you!

  Read the course
 summary on this page

 Fill in your details and Request information

 Receive all the info you need

Find more courses here